4.1 Economic Indicators & Measuring Economic Health

Multiple Choice

Which of the following best describes the focus of macroeconomics?

• Overall economic performance and behavior

• Individual consumer choices

• Business management strategies

• Stock market trends

Multiple Select

Which of the following are considered the big three economic goals?

• Economic Growth

• Price Stability

• Low Unemployment

• High Interest Rates

Fill in the Blank

The total value of all goods and services produced in a country is known as ___.

Multiple Choice

Which of the following is NOT a component in the GDP formula?

• Consumer Spending

• Investment

• Imports

• Interest Rates

Multiple Choice

GDP includes which of the following?

• Restaurant meals

• Used car sales

• Household work

• Illegal activities

Fill in the Blank

The unemployment rate measures the percentage of the labor force that is ___ seeking work.

Open Ended

Explain the difference between inflation and deflation, and discuss how each can impact economic growth.

Multiple Choice

Which of the following best describes 'creeping inflation'?

• A slow and steady rise in prices (1-3% per year)

• A rapid increase in prices (double or triple digits)

• Extremely high, out-of-control inflation (hundreds or thousands of percent)

• A decrease in prices over time

Multiple Choice

What is included in the 'market basket' used to calculate the Consumer Price Index (CPI)?

• Everyday items like food, housing, clothing, transportation, and healthcare

• Luxury goods and services only

• Only food and beverages

• Stocks and bonds

Fill in the Blank

The CPI is calculated by selecting a base year, comparing the cost of the market basket each year to the base year, and calculating the percentage change to find the ___ rate.

Multiple Choice

Which of the following are effects of changes in the Consumer Price Index (CPI)?

• Cost of living adjustments for wages, pensions, and social security

• Interest rates set by the Federal Reserve

• Business decisions on pricing and wages

• All of the above

Multiple Choice

Which of the following best describes the business cycle?

• It shows the natural rise and fall of economic activity over time.

• It is a government policy to control inflation.

• It only measures unemployment rates.

• It is a one-time event in an economy.

Multiple Select

Which of the following are characteristics of the expansion phase of the business cycle?

• Economy grows, GDP rises

• Unemployment rises

• Consumer confidence and spending increase

• GDP falls

Multiple Choice

During which phase of the business cycle does GDP fall and unemployment rise?

• Expansion

• Peak

• Contraction (Recession)

• Trough

Fill in the Blank

The lowest point of the business cycle is called the ___.

Open Ended

Explain how governments and businesses respond to different phases of the business cycle.

Multiple Choice

Which of the following is NOT an economic indicator used to measure economic health?

• GDP

• Unemployment rate

• Inflation

• Weather patterns

Open Ended

How do GDP, unemployment, and inflation help us understand the health of an economy?